The Cyprus Securities and Exchange Commission (CySEC) has warned traders against trading with one of the newer binary options brokers. Bullet Investment was called out for what the regulator referred to as non-compliance with laid down procedures for regulation and operation.
CySEC is the main regulator for many binary options trading platforms which include brokers, automated platforms and other binary options major players.
Bullet Investment which is a fairly new entrant in the crowded binary options markets and there is not much in the public domain about the broker. This will be a welcome move by many legit brokers who have been alarmed by the proliferation of scammers entering the market as brokers. Such scammers’ fraudulent activities have been responsible for most of the woes the industry has been facing in its short life.
The warning, which came in the form of a statement, condemned Bullet Investment as an entity that has never been registered with the CySEC. Bullet Investment has been dismissed as not being a bank, cooperative or any form of financial institution that is recognized by the republic of Cyprus and so it is trading outside of EU approved rules. The statement goes on to say that no other EU member state has received any form of notification that this company wishes to operate within the rules as yet, quoting Sections 77 and 80 of the treaty.
The watchdog whose seat is in Nicosia warned traders and the general public that Bullet Investment is not permitted to offer any form of financial services under the Investment Services and Activities and Regulated Markets Law. This essentially means that people who trade binary options with this company as his brokers will be on his own as there will be place for them to seek redress among recognized regulators in Europe and North America.
A deeper look into the Bullet Investment website raises some red flags in itself. There is a blank space where the license number the company should have. It claims to have been registered by regulators in St Vincent and the Grenadines but the name of the regulator and the all-importantlicense number are glaringly not provided.
Bullet Investments promises traders great rewards for training with them. The site displays ‘live’ charts of their trading signals for currencies and commodities on their home page. They also promise a multilingual customer support system.
While Bullet Investment has not released any formal response to warning sent out by CySEC, it will be interesting to hear what the company has to say for itself if it does at all. Most of the brokers called out prefer to continue operating silently hoping not too many people saw the warning or took heed to its contents.
CySEC is respected by traders because it does not shy away from calling out binary options brokers that it deems unworthy of conducting business I the EU. In the past few months several binary options brokers have been disowned by the watchdog in Cyprus. These brokers include: TradeKing Brokers, Falcon Brokers, 500option Brokers and MXTrade Brokers. There is no indication that such calling out will come to an end anytime soon which will be good news to other legit brokers and traders alike. With so many new players coming in, it seems CySEC have their work cut for them.
As always, CySEC continues to implore all the people who want to trade in binary options to check from their website http://www.cysec.gov.cy/en-GB/home for the approved brokers and any other people who are legally regulated in the Cyprus and by extension, the EU, to offer financial and investment services.